1

ESPN Enterprises manufactures a food product, details of which are as under:

Standard cost per unit:

Materials 60 kgs @ Rs.48 per kg

Labour 480 hours @ Rs.8 per hour

Actual cost for the month:

Material 5,900 kgs @ Rs.50 per kg

Labour 47,500 hours @ Rs.9 per hour

Actual production 100 units

Required:

(i)

Calculate the material and labour cost variances;

(ii)

Reconcile the standard and actual co